Correlation Between Cisco Systems and NORDSTROM
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By analyzing existing cross correlation between Cisco Systems and NORDSTROM INC 695, you can compare the effects of market volatilities on Cisco Systems and NORDSTROM and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Cisco Systems with a short position of NORDSTROM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cisco Systems and NORDSTROM.
Diversification Opportunities for Cisco Systems and NORDSTROM
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cisco and NORDSTROM is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Cisco Systems and NORDSTROM INC 695 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORDSTROM INC 695 and Cisco Systems is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Cisco Systems are associated (or correlated) with NORDSTROM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORDSTROM INC 695 has no effect on the direction of Cisco Systems i.e., Cisco Systems and NORDSTROM go up and down completely randomly.
Pair Corralation between Cisco Systems and NORDSTROM
Given the investment horizon of 90 days Cisco Systems is expected to generate 1.21 times more return on investment than NORDSTROM. However, Cisco Systems is 1.21 times more volatile than NORDSTROM INC 695. It trades about 0.19 of its potential returns per unit of risk. NORDSTROM INC 695 is currently generating about -0.12 per unit of risk. If you would invest 5,596 in Cisco Systems on August 25, 2024 and sell it today you would earn a total of 259.00 from holding Cisco Systems or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cisco Systems vs. NORDSTROM INC 695
Performance |
| Timeline |
| Cisco Systems |
| NORDSTROM INC 695 |
Cisco Systems and NORDSTROM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cisco Systems and NORDSTROM
The main advantage of trading using opposite Cisco Systems and NORDSTROM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cisco Systems position performs unexpectedly, NORDSTROM can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in NORDSTROM will offset losses from the drop in NORDSTROM's long position.| Cisco Systems vs. Eshallgo Class A | Cisco Systems vs. Amtech Systems | Cisco Systems vs. Gold Fields Ltd | Cisco Systems vs. Aegean Airlines SA |
| NORDSTROM vs. The Coca Cola | NORDSTROM vs. JPMorgan Chase Co | NORDSTROM vs. Dupont De Nemours | NORDSTROM vs. Alcoa Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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